Digital disruptors dislodge ageing business models

Simon Carpenter, the Chief Technology Advisor at SAP  IMAGE - GIFT NDOLWANE
Simon Carpenter, the Chief Technology Advisor at SAP IMAGE – GIFT NDOLWANE

JOHANNESBURG, (CAJ News) – AIRBNB, Alibaba and Uber have been cited as confirmation digital disruptors are designing a new world that leverages technologies to change their respective industries.
Digital trends expert, Simon Carpenter, the Chief Technology Advisor at SAP, said the emergence of these companies had left traditional linear business models under threat.
He cited multibillion startups that had recorded tremendous success like Uber, the world’s largest urban logistics company, owns no vehicles.
Carpenter pointed Airbnb had positioned itself as world‘s largest accommodation provider altthough it owns no real estate.
Alibaba has made a name for itself as as the world’s most valuable retailer but owns no inventory.
“Digital transformation could quickly become a cost of doing business for small and midsize businesses that want to maximize growth and profitability,” Carpenter said in Johannesburg.
Industry experts concurred.
Research indicates 52 percent of the Fortune 500 firms of 2000 are gone while in ten years, 60 percent of Fortune 500 companies will no longer exist, according to John Chambers, Chief Executive of CISCO.
Ray Wang, CEO of Constellation Research, agreed.
“In 1960 average age of a company on the S&P 500 was 60 years old. It will be 12 years old by 2020, a 5X compression,” Wang said.
Recognising the many challenges faced by organisations during their digital journeys, SAP has released SAP Model Company Services, hailed as a proven, ready-to-use reference solutions designed to both simplify and accelerate the complex transformation process.
SAP Model Company Services will minimise risks and accelerate time to value by employing state-of-the-art applications and proven best practices garnered from the real-life experiences of market leaders at real companies in major industries to help organisations navigate the perilous digital transformation waters.
“Companies today face a dilemma,” said Carpenter.
Herbert Illgner, Executive Vice President, Strategic Projects, SAP, said companies must navigate the complexities of digital transformation without disrupting day-to-day business operations.
“With the SAP Model Company services, we provide a framework to do just that. The model company approaches have been tried and proven. They’re effective in delivering faster time to value, predictable results and business transformation,” he said.
The SAP offering is available as a standalone offering or as part of the SAP S/4HANA Value Assurance service packages.
CAJ News

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